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HomeMy WebLinkAboutOrdinance-1991-0885 INTRODUCED BY COUNCILMEMBER EDWARDS Ordinance No. 885 Series of 1991 TITLE: AN ORDINANCE REENACTING, WITH AMENDMENTS, THE PROVISIONS OF CHAPTER 11, LICENSES, PERMITS AND MISCELLANEOUS BUSINESS REGULATIONS; AND CHAPTER 22, TAXATION, OF THE CODE OF LAWS OF THE CITY OF WHEAT RIDGE. WHEREAS, the City council of the City of Wheat Ridge adopted Ordinance 869, Series of 1991, on August 12, 1991, which ordinance became effective September 1, 1991; WHEREAS, subsequent to September 1, 1991, the electors of the City of Wheat Ridge adopted, by a vote of 2,948 in favor and 635 opposed, at the regular election of November 5, 1991, an amendment to the City's Home Rule Charter reiterating the authority of the City Council to impose taxes, subject to the requirement that the rate of sales tax not be raised without a vote of the electorate; WHEREAS, subsequent to November 1, 1991, the Colorado Municipal League (CML) and the Colorado Association of Commerce and Industry (CACI) have jointly agreed upon uniform definitions to be included with the sales tax ordinances of the various municipalities in the State of Colorado, and CML has requested all Colorado municipalities, including home rule municipalities such as Wheat Ridge, to adopt those uniform definitions and certain uniform audit provisions, all of which are set forth herein; WHEREAS, subsequent to September 1, 1991, certain Colorado Supreme Court opinions have been rendered which clarify the rights and duties of Colorado home rule cities regarding sales and use tax dispute resolution procedures; WHEREAS, in an effort to be responsible, and in a further effort to be responsive to the above circumstances, the City Council of the City of Wheat Ridge has determined to readopt, with amendments, the provisions of Ordinance 869, Series of 1991. NOW THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF WHEAT RIDGE, COLORADO, THAT: Section 1. the City of Wheat amended, repealed, The following Sections of the Code of Laws of Ridge, as either adopted, or as expressly not or altered in any way, by Ordinance 869, Series of 1991, are hereby expressly readopted without amendment, alteration or change: Section 11-1. Exempt Institution License section 11-22. violations section 11-23. Scope of Article Section 11-24. Applications section 11-25. Issuance of License section 11-26. Licenses section 11-27. Expiration of and Renewal of License section 11-28. Denial of License section 11-29. Fees Section 11-30. Cancellation of License section 11-31. Suspension section 11-32. Conditional Suspension section 11-33. Revocation section 11-34. Adverse Action section 22-1. Lodger's Tax section 22-2. Admissions' Tax Section 22-21 (b) Definitions and Usage section 22-23. Motor Vehicles section 22-33. Administrative Authority of Treasurer Section 22-36. Disputes; Refunds, Limitation of Actions section 22-37. Nonresident Vendor section 22-38. Transfer of Ownership of Business; Renewal or Issuance of Business License section 22-39. Liability of Retailer or Vendor for Collection 2 section 22-40. Reports by Vendor; Payment of Tax; Monies Collected Held in Trust section 22-41. Sales or Use Tax; Deficiency section 22-42. Business Records; Burden of Proof section 22-43. Refusal to Report; Estimate Emergency Collection Procedures; and Interest of Tax; Penalties section 22-44. Limitation of Action section 22-45(a) and (b). Taxpayer's Remedies section 22-46. Additional Remedies of City section 22-56. Schedule section 22-57. Property and Service Subject to Tax section 22-58, except (2) and (25). Exempt Sales Section 22-66. Property Subject to Tax Section 22-67. Exemptions, except 22-67(2) section 22-68. Building Materials and Supplies section 2. section 22-21. Definitions and Usage, of the Code of Laws of the City of Wheat Ridge is hereby amended by adding the following definitions to subpart 22-21(a): "Access services" means the services furnished by a local exchange company to its customers who provide telecommunications services which allow them to provide such telecommunications services. "Auction" means any sale where tangible personal property is sold by an auctioneer who is either the agent for the owner of such property or is in fact the owner thereof. "Automotive vehicle" or "motor vehicle" means any vehicle or device in, upon, or by which any person or property is or may be transported or drawn upon a public highway, or any device used or designed for aviation or flight in the air. Automotive vehicle includes, but is not limited to, motor vehicles, trailers, semi- trailers, or mobile homes. Automotive vehicle shall not include devices moved by human power or used exclusively upon stationary rails or tracks. 3 "Exempt commercial packaging materials" means containers, labels and shipping cases sold to a person engaged in manufacturing, compounding, or wholesaling, jobbing, retailing, packaging, distributing or bottling for sale, profit or use that meets all of the following conditions: (i) is used by the manufacturer, compounder, wholesaler, jobber, retailer, packager, distributor or bottler to contain or label the finished product; (ii) is transferred by said person along with and as a part of the finished product to the purchaser; and (iii) is not refundable to said person for reuse. "Finance Director" means the Treasurer of the City of Wheat Ridge, or his designee. "Lodging services" means the furnishing of rooms or accommodations by any person, partnership, association, corporation, estate, representative capacity or any other combination of individuals by whatever name known to a person who for a consideration uses, possesses, or has the right to use or possess any room in a hotel, inn, bed and breakfast residence apartment hotel, lodging house, motor hotel, guesthouse, guest ranch, trailer coach, mobile home, auto camp, or trailer court and park, OR SIMILAR ESTABLISHMENT, for a period of less than thirty (30) days under any concession, permit, right of access, license to use, or other agreement, or otherwise. "Pay microwave imposed. television" shall include, but not be limited to, cable, or other television service for which a charge is "Preprinted newspaper supplements" shall mean inserts, attachments or supplements circulated in newspapers that: (1) are primarily devoted to advertising; and (2) the distribution, insertion, or attachment of which is commonly paid for by the advertiser. "Prescription drugs for animals" means drugs dispensed in accordance with any order in writing, dated and signed by a practitioner, or given orally by a practitioner, specifying the animal for which the medicine or drug is offered and directions, if any, to be placed on the label. "Purchase" or "sale" means the acquisition for any consideration by any person of tangible personal property or taxable services that are purchased, leased, rented, sold, used, stored, distributed, or consumed, but excludes a bona fide gift of property or services. These terms include capital leases, installment and credit sales, and property and services acquired by: (1) Transfer, either conditionally or absolutely, of title or possession or both to tangible personal property; 4 (2) A lease, lease-purchase agreement, rental or grant of a license, including royalty agreement, to use tangible personal property or taxable services; (3) Performance of taxable services; or (4) Barter or exchange for other property or services including coupons. The terms "purchase" and "sale" do not include: (1) A division of partnership assets among the partners according to their interests in the partnership; (2) The formation of a corporation by the owners of a business and the transfer of their business assets to the corporation in exchange for all the corporation's outstanding stock, except qualifying shares, in proportion to the assets contributed; (3) The transfer of assets of shareholders in the formation or dissolution of professional corporations; (4) The dissolution and the pro rata distribution of the corporation's assets to its stockholders; (5) A transfer of a partnership interest; (6) The transfer in a reorganization qualifying under section 368 (a) (1) of the "Internal Revenue Code of 1954," as amended; (7) The formation of a partnership by the transfer of assets to the partnership or transfers to a partnership in exchange for proportionate interests in the partnership; (8) The repossession of personal property by a chattel mortgage holder or foreclosure by a lienholder; (9) The transfer of assets from a parent corporation to a subsidiary corporation or corporations which are owned at least eighty percent (80%) by the parent corporation, which transfer is solely in exchange for stock or securities of the subsidiary corporation; (10) The transfer of assets from a subsidiary corporation or corporations which are owned at least eighty percent (80%) by the parent corporation to a parent corporation or to another subsidiary which is owned at least eight percent (80%) by the parent corporation, which transfer is solely in exchange for stock or securities of the parent corporation or the subsidiary which received the assets; 5 (11) The transfer of assets between parent and closely held subsidiary corporation, or between subsidiary corporations closely held by the same parent corporation, or between corporations which are owned by the same shareholders in identical percentage of stock ownership amounts, computed on a share-by-share basis, when a tax imposed by this article was paid by the transferor corporation at the time it acquired such assets, except to the extent that there is an increase in the fair market value of such assets resulting from the manufacturing, fabricating, or physical changing of the assets by the transferor corporation. To such an extent any transfer referred to in this paragraph (11) shall constitute a sale. For the purposes of this paragraph (11), a closely held subsidiary corporation is one inn which the parent corporation owns stock possessing at least eight percent (80%) of the total combined voting power of all classes of stock entitled to vote and owns at least eighty percent (80%) of the total combined voting power of all classes of stock entitled to vote and owns at least eighty percent (80%) of the total number of shares of all other classes of stock. "Recreation services" means all services relating to athletic or entertainment participation events including but not limited to pool, golf, billiards, skating, tennis, bowling, health/athletic club memberships, coin operated amusement devices, video games and video club memberships. "Tax deficiency" means any amount of tax that is not reported or not paid on or before the due date. "Taxable services" means services subject to tax pursuant to this Code. "Therapeutic device" means devices, appliances, or related accessories that are sold to correct or treat a human physical disability or surgically created abnormality; if such device, appliance or related accessory has a retail value of more than one hundred dollars, it must be sold in accordance with a written recommendation from a licensed doctor to qualify as a "therapeutic device" for purposes of this Code. "Total tax liability" means the total of all tax, penalties or interest owed by a taxpayer and shall include sales tax collected in excess of such tax computed on total sales. "WATS/800 service" means any outbound or inbound interstate wide area telecommunications service or other similar service which entitles the subscriber, upon payment of a periodic charge, based upon a flat amount and/or usage, to make or receive a large volume of telephonic communications to or from persons having telephone or radio telephone stations in specified areas which are outside 6 the telephone system area in which the subscriber's station is located. section 3. The Code of Laws of the City of hereby amended by repealing and reenacting definitions in section 22-21(a) thereof: Wheat Ridge is the following "Business" means all activities engaged in or caused to be engaged in with the object of gain, benefit, or advantage, direct or indirect. "Charitable organization" means any entity organized and operated exclusively for religious, charitable, scientific, testing for public safety, literary, or educational purposes, or to foster national or international amateur sports competition (but only if no part of its activities involve the provision of athletic facilities or equipment), or for the prevention of cruelty to children or animals, no part of the net earning of which inures to the benefit of any private shareholder or individual, no substantial part of the activities of which is carrying on propaganda, or otherwise attempting, to influence legislation, and which does not participate in, or intervene in (including the publishing or distributing of statements), any political campaign on behalf of any candidate for public office. "Drugs dispensed in accordance with a prescription" or "prescription drugs" means drugs dispensed in accordance with any order in writing, dated and signed by a licensed practitioner of the healing arts, or given orally by a practitioner, and immediately reduced to writing by the pharmacist, assistant pharmacist, or pharmacy intern, specifying the name and address of the person for whom the medicine, drug or poison is offered and directions, if any, to be placed on the label. "Engaged in business in providing services or selling, installing tangible personal consumption wi thin the city. includes, but is not limited activities by a person: the city" means performing or leasing, renting, delivering or property for storage, use or Engaged in business in the City to, anyone of the following (1) Directly, indirectly, or by a subsidiary maintains a building, store, office, salesroom, warehouse, or other place of business within the taxing jurisdiction; (2) Sends one or more employees, agents or commissioned sales persons into the taxing jurisdiction to solicit business or to install, assemble, repair, service, or assist in the use of its products, or for demonstration for other reasons; 7 (3) Maintains one or commissioned sales persons duty at jurisdiction; more employees, agents or a location within the taxing (4) Owns, leases, rents or otherwise exercises control over real or personal property within the taxing jurisdiction; or (5) Makes more than one delivery into the taxing jurisdiction within a twelve (12) month period. "Farm closeout sale" means full and final disposition of all tangible personal property previously used by a farmer or rancher in farming or ranching operations which are being abandoned. "Gross sales" credit, property or sales, leases, or services. means the total amount received in money, other consideration valued in money for all rentals of tangible personal property or "Linen services" means cleaning of linens, including coveralls and diapers. services involving provision and but not limited to rags, uniforms, "Medical equipment" means all items of tangible personal property utilized by a physician, dentist or veterinarian, or which is utilized within a healthcare facility, in the rendering or delivery of medical or healthcare services to any person or animal. "Medical supplies" means drugs dispensed in accordance with a prescription; insulin in all its forms dispensed pursuant to the direction of a licensed physician; glucose useable for treatment of insulin reactions; urine- and blood-testing kits and materials; insulin measuring and injecting devices, including hypodermic syringes and needles; prosthetic devices; wheelchairs and hospital beds; drugs or materials when furnished by a doctor as part of professional services provided to a patient; and corrective eyeglasses, contact lenses, or hearing aids; provided that these definitions include items purchased for use by medical and dental practitioners or medical facilities in providing their services, even though certain of those items may be packaged for single use by individual patients after which the item would be discarded. 8 "Newspaper" means a publication, printed on newsprint, intended for general circulation, and published regularly at short intervals, containing information and editorials on current events and news of general interest. The term newspaper does not include: magazines, trade publications or journals, credit bulletins, advertising inserts, circulares, directories, maps, racing programs, reprints, newspaper clipping and mailing services or listings, publications that include an updating or revision service, or books or pocket editions of books. "Price" or "purchase price" means the price to the consumer, exclusive of any direct tax imposed by the federal government or by this article, and, in the case of all retails sales involving the exchange or property, also exclusive of the fair market value of the property exchanged at the same time and place of the exchange, if: (1) Such exchanged property is to be sold thereafter in the usual course of the retailer's business, or (2) Such exchanged property is a vehicle and is exchanged for another vehicle and both vehicles are subject to licensing, registration, or certification under the laws of this state, including, but no limited to, vehicles operating upon public highways, off-highway recreation vehicles, watercraft, and aircraft. Any money or other consideration paid over and above the value of the exchanged property is subject to tax. "Price" or "purchase price" includes: credits; (1) The amount of money received or due in cash and (2) Property at fair market value taken in exchange but not for resale in the usual course of the retailer's business; (3) Any consideration valued in money, such as trading stamps or coupons whereby the manufacturer or someone else reimburses the retailer for part of the purchase price and other media of exchange; (4) The total price charged on credit sales including finance charges which are not separately stated. An amount charged as interest on the unpaid balance of the purchase price is not part of the purchase price unless the amount added to the purchase price is included in the principal amount of a promissory note; except the interest or carrying charge set out separately from the unpaid balance of the purchase price on the face of the note is not part of the purchase price. An amount charged for insurance on the property sold and separately stated is not part of the purchase price; 9 (5) Installation, delivery and wheeling-in charges included in the purchase price and not separately stated; (6) Transportation and other charges to effect delivery of tangible personal property to the purchaser; (7) Indirect federal manufacturers' excise taxes, such as taxes on automobiles, tires and floor stock; (8) The gross purchase price of articles sold after manufacturing or after having been made to order, including the gross value of all the materials used, labor and service performed and the profit thereon. "Price" or "purchase price" shall not include: (1) Any sales or use tax imposed by the state of Colorado or by any political subdivision thereof; (2) The fair market value of property exchanged if such property is to be sold thereafter in the retailer's usual course of business. This is not limited to exchanges in Colorado. Out of state trade-in's are an allowable adjustment to the purchase price. (3) Discounts from the original price if such discount and the corresponding decrease in sales tax due is actually passed on to the purchaser. An anticipated discount to be allowed for payment on or before a given date is not an allowable adjustment to the price in reporting gross sales. "Private communications services" means telecommunications services furnished to a subscriber, which entitles the subscriber to exclusive or priority use of any communication channel or groups of channels, or to the exclusive or priority use of any interstate inter-communications system for the subscriber's stations. "Prosthetic Devices" means any artificial limb, part, device or appliance for human use which aids or replaces a bodily function; is designed, manufactured, altered or adjusted to fit a particular individual; and is prescribed by a licensed practitioner of the healing arts. Prosthetic devices include but are not limi ted to prescribed auditory, ophthalmic or ocular, cardiac, dental, or orthopedic devices or appliances, oxygen concentrators and oxygen with related accessories. "Retail sales" means all sales except wholesale sales. "Retailer" or "vendor" means any person selling, leasing or renting tangible personal property or services at retial. Retailer shall include: 10 (1) Auctioneer; (2) Salesperson, representative, peddler or canvasser, who makes sales as a direct or indirect agent of or obtains such property or services sold from a dealer, distributor, supervisor or employer; (3) Charitable organization or governmental entity which makes sales of tangible personal property to the public, notwithstanding the fact that the merchandise sold may have been acquired by gift or donation or that the proceeds are to be used for charitable or governmental purposes. "Sales tax" means the tax to be collected and remitted by a retailer on sales taxed under this Code. "Tax" means the use tax due from a consumer or the sales tax due from a retailer or the sum of both due from a retailer who also consumes. "Taxable sales" means gross sales less any exemptions and deductions specified in this Code. "Taxpayer" means any person obligated to collect and/or pay tax under the terms of this Code. "Telecommunications service" means the transmission of any two-way interactive electromagnetic communications including but not limited to voice, image, data and any other information, by the use of any means but not limited to wire, cable, fiber optical cable, microwave, radio wave or any combinations of such media. "Telecommunications service" includes but is not limited to basic local exchange telephone service, toll telephone service and teletypewriter service, including but not limited to residential and business service, directory assistance, cellular mobile telephone or telecommunication service, specialized mobile radio and two-way pagers and paging service, including any form of mobile two-way communication. "Telecommunications service" does not include separately stated non transmission services which constitute computer processing applications used to act on the information to be transmitted. "Use tax" means the tax paid or required to be paid by a consumer for using, storing, distributing or otherwise consuming tangible personal property or taxable services inside the City. "Wholesale sales" means sales to licensed retailers, jobbers, dealers or wholesalers for resale. Sales by wholesalers to consumers are not wholesale sales. Sales by wholesalers to non- licensed retailers are not wholesale sales. 11 section 4. Except as amended in sections 2 and 3 of this ordinance, all definitions set forth in section 22-21 as adopted in Ordinance 869, Series of 1991, are hereby readopted. section 5. hereby amended provisions: The Code of Laws of the city of Wheat Ridge is by repealing and reenacting the following section 22-22. Legislative Intent. It is the intent of the city of Wheat Ridge that all sales, transfers or consumption of tangible person property within the city of Wheat Ridge shall be subject to the sales and/or use tax imposed hereby, unless the same is specifically exempted from taxation under the provisions of sections 22-58 or 22-67 hereof. The City Council of the City of Wheat Ridge hereby reaffirms its authority as a home rule city, pursuant to the provisions of Article XX of the Constitution of the state of Colorado, and the Home Rule Charter of the City of Wheat Ridge, to "assess, levy, and collect" local sales and use taxes as deemed appropriate by this City Council, in the exercise of its lawful legislative discretion. Section 22-45(c). If the dispute was not resolved by the informal hearing, the taxpayer, pursuant to the expressed authority of Colo. Rev. Stat. 29-2-106.1(9), may elect to pursue either of the following avenues of appeal within thirty (30) days of the City's final decision: (1) The taxpayer may request a formal hearing on the record before a hearing officer, who shall be selected from among other metropolitan Denver Treasurers/Finance Directors, or who shall be a neutral arbitrator selected by agreement of the parties. The hearing shall be held within sixty (60) days of the taxpayer's request. Those costs of compensation to the hearing officer and transcription costs shall be divided equally between the City and the taxpayer. a. The formal hearing will be on the merits and on the record. The taxpayer shall be responsible for retention of his own legal counsel, if he chooses to be so represented. A transcript of the hearing will be maintained and the Colorado Rules of Evidence shall be observed unless otherwise agreed by the parties. The City shall not be entitled to file a legal brief unless the taxpayer chooses to submit such a brief or statement of legal authorities. The parties may call witnesses who will be subject to cross examination. b. Upon notice to the taxpayer that the City has granted the taxpayer a formal hearing, the taxpayer shall deposit with the City fifty percent (50%) of the amount of the tax deficiency in dispute. The taxpayer will also pay to the City all amounts of tax and related penalties and interest not in dispute. The taxpayer may request permission of the City Treasurer to post 12 security or a bond in lieu of cash payment of the amount in dispute, which request will be granted by the City Treasurer if the Treasurer, in his sole discretion, determines the bond or security is adequate to protect the City's interest. Failure to post the cash or security required herein shall result in the denial of taxpayer's appeal. c. Any appeal from the decision rendered after such formal hearing shall be pursuant to Rule 106 (a) (4) of the Colorado Rules of civil Procedure. d. In the event the final decision denies the taxpayer's claims, such taxes, penalties and interest unpaid shall become immediately payable without further notice of demand for payment by the city. The City shall use all additional remedies to collect unpaid taxes, penalties and interest as provided for under section 22-46; or (2) The taxpayer may elect to pursue the appeal provisions of Colo. Rev. stat. 29-2-106.1. section 22-58. Exempt sales. (2) Except as otherwise provided in this chapter 22, all direct sales to, but not sales by, charitable organizations, as defined in section 22-21 in the conduct of their regular religious, charitable, and eleemosynary functions and activities; provided, however, that building materials and supplies shall be subject to use tax as provided in section 22-68 hereof. Any exempt organization which makes sales of tangible personal property to the public and which otherwise meets the definition of a retailer in Section 22-21, must have a sales tax license and collect and remit tax in the same manner as any other retailer. The fact that the merchandise sold may have been acquired by gift or donation, or that the proceeds are to be used for charitable purposes, does not make the sales exempt from tax. (25) All sales of drugs dispensed in accordance with a prescription, prescription drugs for animals, all sales of insulin in all its forms dispensed pursuant to the direction of a licensed physician, and all sales of prosthetic devices for humans and animals. section 22-67. Exemptions. (2) Tangible personal property, which if it were sold at retail within the City, would be exempt from sales tax under the provisions of Section 22-58, provided, however, that any building materials and supplies shall be subject to use tax as provided in section 22-68 hereof. Section 6. Chapter 22 of the Code of Laws of the City of 13 Wheat Ridge is hereby amended by adding thereto the following sections: section 11-21. Definitions. The definitions applicable to this Article can be found in Section 22-21. section 22-36(b). Disputes; Refunds; Limitation of Actions. (b) subject to the of Laws. The provisions of this section 22-36 are expressly provisions of sections 22-45 and 22-47 of this Code Section 22-42(i). Business Records; Burden of Proof. (i) Coordinated Audit. 1. Any taxpayer licensed in this City pursuant to Section 11-1 or 11-23 of this Code of Laws, and holding a similar sales tax license in at least four other Colorado municipalities that administer their own sales tax collection, may request a coordinated audit as provided herein. 2. Within fourteen (14) days of receipt of notice of an intended audit by any municipality that administers its own sales tax collection, the taxpayer may provided to the finance director of this City, by certified mail, return receipt requested, a written request for a coordinated audit indicating the municipality from which the notice of intended audit was received and the name of the official who issued such notice. Such request shall include a list of those Colorado municipalities utilizing local collection of their sales tax in which the taxpayer holds a current ;sales tax license and a declaration that the taxpayer will sign a waiver of any passage-of-time based limitation upon this City's right to recover tax owed by the vendor for the audit period. 3. Except as provided in paragraph 6, any taxpayer that submits a complete request for a coordinated audit and promptly signs a waiver of the time limits established in sections 22-42(d) and 22-44(a) of this Code of Laws may be audited this City during the twelve (12) months after such request is submitted only through a coordinated audit involving all municipalities electing to participate in such an audit. 4. If this city desires to participate in the audit of a taxpayer that submits a complete request for a coordinated audit pursuant to paragraph (3), the finance director shall so notify the finance director of the municipality whose notice audit prompted the taxpayer's request within ten (10) days 14 after receipt of the taxpayer's request for a coordinated audit. The finance director shall then cooperate with other participating municipalities in the development of arrangements for the coordinated audit, including arrangement of the time during which the coordinated audit will be conducted, the period of time to be covered by the audit, and a coordinated notice to the taxpayer of those records most likely to be required for completion of the coordinated audit. 5. If the taxpayer's request for a coordinated audit was in response to a notice of audit issued by this city, this City's finance director shall facilitate arrangements between this City and other municipalities participating in the coordinated audit unless and until an official from some other participating municipali ty agrees to assume this responsibility. The finance director shall cooperate with other participating municipalities to, whenever practicable, minimize the number of auditors that will be present on the taxpayer's premises to conduct the coordinated audit on behalf of the participating municipalities. Information obtained by or on behalf of those municipalities participating in the coordinated audit may be shared only among such participating municipalities. 6. If the taxpayer's request for a coordinated audit was in response to a notice of audit issued by this City, this City's finance director shall, once arrangements for the coordinated audit between the City and other participating municipalities are completed, provide written notice to the taxpayer of which municipalities will be participating, the period to be audited and the records most likely to be required by participating municipalities for completion of the coordinated audit. The finance director shall also propose a schedule for the coordinated audit. 7. The coordinated audit procedure set forth in this section shall not apply: audit; (a) When the proposed audit is a jeopardy (b) To audits for which a notice of audit was given prior to the effective date of this section; a waiver of 22-44 (a) of (c) When a taxpayer refuses to promptly sign the time limits established in sections 22-42(d) and this Code of Laws, or, (d) When a taxpayer fails to provide a timely and complete request for a coordinated audit as provided in such paragraph (2) of this subsection 22-42(i). 15 section 22-47. Intercity Claims for Recovery. The intent of this section is to streamline and standardize procedures related to situations where tax has been remitted to the incorrect municipality. It is not intended to reduce or eliminate the responsibilities of the taxpayer or vendor to correctly pay, collect, and remit sales and use taxes to the City. (a) As used herein, "claim for recovery" means a claim for reimbursement of sales and use taxes paid to the wrong taxing jurisdiction. (b) When it is determined by the Treasurer that sales and use tax owed to the City has been reported and paid to another municipality, the City shall promptly notify the vendor that taxes are being improperly collected and remitted, and that as of the date of the notice the vendor must cease improper tax collections and remittances. (c) The City may make a written Claim for Recovery directly to the municipality that received tax and/or penalty and interest owed to the City, or, in the alternative, may institute procedures for collection of the tax from the taxpayer or vendor. The decision to make a Claim for a Recovery lies in the sole discretion of the City. Any Claim for Recovery shall include a properly executed release of claim from the taxpayer and/or vendor releasing its claim to the taxes paid to the wrong municipality, evidence to substantiate the Claim, and a request that the municipality approve or deny in whole or in part, the claim within ninety (90) days of its receipt. The municipality to which the City submits a Claim for Recovery may, for good cause, request an extension of time to investigate the Claim, and approval of such extension by the City shall not be unreasonably withheld. (d) within ninety (90) days after receipt of a Claim for Recovery, the City shall verify to its satisfaction whether or not all or a portion of the tax claimed was improperly received, and shall notify the municipality submitting the claim in writing that the Claim is either approved or denied in whole or in part, including the reasons for the decision. If the Claim is approved in whole or in part, the City shall remit the undisputed amount to the municipality submitting the Claim within thirty (30) days of approval. If a Claim is submitted jointly by a municipality and a vendor or taxpayer, the check shall be made to the parties jointly. Denial of a Claim for Recovery may only be made for good cause. (e) The City may deny a Claim on the grounds that it has previously paid a Claim for Recovery arising out of an audit of the same taxpayer. (f) The period subject to a Claim for Recovery shall be limited to the thirty-six (36) month period prior to the date the 16 municipality that was wrongly paid the tax receives the Claim for Recovery. section 22-48. Amendment. Notice of Sales and Use Tax Ordinance (a) In order to initiate a central register of sales and use tax ordinances for municipalities that administer local sales tax collection, the finance director of the City shall file with the Colorado Municipal League prior to the effective date of this Section. (b) In order to keep current the central register of sales and use tax ordinances for municipalities that administer local sales tax collection, the finance director of the City shall file with the Colorado Municipal League prior to the effective date of any amendment a copy of each sales and use tax ordinance amendment enacted by the City. (c) Failure of the City to file such ordinance or ordinance amendment pursuant to this section shall not invalidate any provision of the sales and use tax ordinance or any amendment thereto. Section 22-49. Participation in Simplification Meetings. The Treasurer shall cooperate with and participate on an as- needed basis with a permanent statewide sales and use tax committee convened by the Colorado Municipal League which is composed of state and municipal sales and use tax officials and business officials. Said committee will meet for the purpose of discussing and seeking resolution to sales and use tax problems which may arise. Section 22-57. Property and Service Subject to Tax. (22) Medical supplies and medical equipment. All medical supplies and medical equipment, as hereinbefore defined, except those specifically exempted pursuant to Section 22-58(25) hereof, shall be taxable, either as a sales tax to the ultimate consumer (i.e. patient) or as a use tax payable by either the health care facility (whether or not the health care facility is a for-profit, a not-for-profit, or a charitable institution or entity), physician, dentist or veterinarian utilizing, making available for utilization or consumption by others, or consuming the medical supplies or equipment in the provision of health care services. In the event either the City's sales or use tax is paid on any non-exempt medical supply or item of medical equipment at the time of its purchase, there shall not be a sales tax imposed on any further sale or consumption of said medical supply or item of medical equipment, the intent being to subject all transactions 17 involving non-exempt medical supplies and equipment to either the sales tax or the use tax, but not both. Section 7. Severability. If any clause, sentence, paragraph, or part of this ordinance or the application thereof to any person or circumstances shall for any reason be adjudged by a court of competent jurisdiction invalid, such judgment shall not affect application to other persons or circumstances. section 8. Safety Clause. The City Council hereby finds, determines, and declares that this ordinance is promulgated under the general police power of the City of Wheat Ridge, that it is promulgated for the health, safety, and welfare of the public, and that this ordinance is necessary for the preservation of health and safety and for the protection of public convenience and welfare. The City Council further determines that the ordinance bears a rational relation to the property legislative object sought to be attained. section 9. This ordinance shall become effective January 1, 1992 at 12:01 a.m. INTRODUCED, READ, AND ADOPTED on first reading by a vote of 8 to 0 on this 25th day of November , 1991, ordered published in full in a newspaper of general circulation in the City of Wheat Ridge and Public Hearing and consideration on final passage set for Monday. December 23 , 1991, at 7:30 o'clock p.m., in the Council Chambers, 7500 West 29th Avenue, Wheat Ridge, Colorado. READ, ADOPTED, reading by a vote of December AND ORDERED 7 to 1991. PUBLISHED 1 this on second and 23rd day of final 18 SIGNED by the Mayor on this 24th 1991. day of December , 'h? / ' I" -,<, '~l' (L< "j L )" Ray J. , ,p'ger, Jr.( tt..ayor ATTEST: \ \ ,----' I -J, \ , , Wanda APPROVEDCA~O FORM BY OFFICE~TY ATTORNEY ,( r )( !' ( -, ----z John E. Hayes~/c-:;-t>.k Attorney /; 7~ 1st Publication: December 5, 199r' 2nd Publication: January 2, 1992 Wheat Ridge sentinel: Effective Date: January 1, 1992 at 12:01 a.m. 19